Schlumberger, the world’s largest provider of oilfield services, is backing down from an agreement to buy interest in a Russian drilling contractor Eurasia Drilling Company Limited (EDC).
Schlumberger announced on Thursday that it does not intend to extend the pending agreement to acquire a minority equity interest in EDC, once the current extension expires on September 30, 2015.
Schlumberger said it would instead focus on other M&A opportunities.
After it was announced in January 2015 that the world’s largest provider of oilfield services would buy interest in EDC for $1.7 billion, the merger came across obstacles in the form of Russian Federal Anti/Monopoly Service and the Government Commission on Monitoring Foreign Investment as the companies had to wait for Commission’s final written confirmation.
In light of this, the two companies extended the long-stop date for completion of the transaction four times, the final extension being the one set for September 30, 2015.
Before Schlumberger’s announcement came to light on Thursday, EDC announced on Wednesday that it would hold a conference call in relation to the transaction with Schlumberger on September 30, 2015.
Offshore Energy Today Staff